The Federal Open Market Committee (FOMC) cut its target range for the fed funds rate 50 bps today. The timing of the move was a bit unusual, coming ahead of the next regularly scheduled FOMC meeting on March 18. . The decision to cut rates 50 bps today was unanimously supported by all ten voting FOMC members who noted the coronavirus poses evolving risks to economic activity. The rupee recovered sharply to 73.00 in the NDF market before weakening back to 73.20 in current trade. If the situation onshore deteriorates further, triggering an Exodus from domestic stocks and bonds, we could see the Rupee weaken to test previous lows of around 74.50 against the USD very quickly.The emergency rate cut delivered to contain the negative impact of coronavirus on the economy initially had a positive impact on equities. The sentiment, however, turned bearish and the US markets ended the day in the red as investors took the rate cut as a sign of panic. the Indian rupee remains exposed to further downside risks in the near-term amid persisting coronavirus crisis.Expect RBI to keep intervening in order to maintain rupee competitiveness vis-à-vis Chinese yuan.Fed's emergency 50 bps cut may stem decline in rupee in near-term but if contagion spreads, INR may fall more.Believe risk to further near-term rupee weakness high, especially given seasonal weakness in Apr-Jun.NR’s relative resilience has given way due to heightened global market volatality, more virus cases in India